Adobe (NASDAQ:ADBE) Stock Rating Lowered by Dbs Bank

Key Points

• Dbs Bank downgraded Adobe from “moderate buy” to “hold,” adding to a mostly cautious analyst tone around the stock.
• Adobe’s shares were down slightly and opened at $254.99; the stock has traded well below its 52-week high of $422.95 and currently carries a consensus Hold rating with a $338.15 target price.
• The company recently beat quarterly estimates and authorized a $25 billion share buyback, while executives also disclosed recent stock sales and institutional ownership remains high at 81.79%.

Adobe (NASDAQ:ADBE - Get Free Report) was downgraded by stock analysts at Dbs Bank from a "moderate buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Other research analysts have also recently issued research reports about the company. Summit Redstone set a $350.00 price objective on Adobe in a research report on Friday, April 17th. Argus restated a "hold" rating on shares of Adobe in a research note on Monday, March 16th. Wall Street Zen cut Adobe from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Morgan Stanley reduced their price target on Adobe from $425.00 to $365.00 and set an "equal weight" rating on the stock in a research report on Friday, March 13th. Finally, HSBC set a $302.00 target price on Adobe in a research note on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, seventeen have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $338.15.

Adobe Trading Down 0.3%

Shares of Adobe stock opened at $254.99 on Tuesday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.91 and a current ratio of 0.91. Adobe has a 52 week low of $224.13 and a 52 week high of $422.95. The stock has a 50 day moving average price of $246.83 and a two-hundred day moving average price of $289.04. The stock has a market capitalization of $103.07 billion, a PE ratio of 14.85, a price-to-earnings-growth ratio of 1.00 and a beta of 1.42.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings data on Thursday, March 12th. The software company reported $6.06 EPS for the quarter, beating analysts' consensus estimates of $5.87 by $0.19. The firm had revenue of $6.40 billion during the quarter, compared to analysts' expectations of $6.28 billion. Adobe had a return on equity of 64.48% and a net margin of 29.48%.The company's revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter last year, the firm posted $5.08 earnings per share. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. As a group, equities analysts anticipate that Adobe will post 19.14 earnings per share for the current fiscal year.

Adobe declared that its board has initiated a share buyback program on Tuesday, April 21st that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the software company to purchase up to 24.9% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board of directors believes its stock is undervalued.

Insider Transactions at Adobe

In related news, CFO Daniel Durn sold 1,336 shares of Adobe stock in a transaction on Monday, April 20th. The stock was sold at an average price of $248.02, for a total transaction of $331,354.72. Following the transaction, the chief financial officer directly owned 42,833 shares in the company, valued at approximately $10,623,440.66. The trade was a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Shantanu Narayen sold 75,000 shares of the business's stock in a transaction dated Tuesday, April 28th. The shares were sold at an average price of $243.54, for a total value of $18,265,500.00. Following the completion of the transaction, the chief executive officer owned 359,538 shares in the company, valued at $87,561,884.52. The trade was a 17.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 77,091 shares of company stock worth $18,782,773 in the last ninety days. Insiders own 0.20% of the company's stock.

Institutional Investors Weigh In On Adobe

Several large investors have recently made changes to their positions in ADBE. Norges Bank bought a new stake in shares of Adobe in the fourth quarter worth about $2,275,165,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of Adobe by 53.3% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,617,145 shares of the software company's stock worth $1,981,448,000 after purchasing an additional 1,952,994 shares during the last quarter. Dodge & Cox increased its holdings in shares of Adobe by 8,006.6% in the third quarter. Dodge & Cox now owns 1,593,506 shares of the software company's stock worth $562,109,000 after purchasing an additional 1,573,849 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of Adobe by 55.2% in the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company's stock worth $912,705,000 after purchasing an additional 920,353 shares during the last quarter. Finally, Amundi increased its holdings in shares of Adobe by 17.9% in the third quarter. Amundi now owns 4,888,283 shares of the software company's stock worth $1,711,583,000 after purchasing an additional 742,646 shares during the last quarter. 81.79% of the stock is owned by institutional investors.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe was mentioned in bullish coverage that says the software rally may still have room to run, with the stock viewed as a quality name in the software group alongside ServiceNow. The software rally may still have legs. Buy ServiceNow and Adobe.
• Positive Sentiment: Adobe is drawing investor attention after reports that Michael Burry added the stock to his beaten-down picks, which can signal value appeal and support sentiment around ADBE. Michael Burry just loaded up on these 5 beaten-down stocks
• Positive Sentiment: Adobe announced a product expansion that brings professional creative tools into Google Gemini, and said a Premiere Android app is coming soon, reinforcing its AI and mobile growth story. Adobe brings professional creative tools straight into Google Gemini; Premiere Android app coming soon
• Positive Sentiment: Multiple articles called Adobe a top-ranked growth stock or a potential value opportunity, suggesting sentiment remains constructive despite the share price trading below prior highs. Adobe Systems (ADBE) is a Top-Ranked Growth Stock: Should You Buy?
• Neutral Sentiment: Adobe also appeared in a lawsuit-related notice from the Shareholders Foundation, which may keep legal risk in focus but does not appear to be the main trading driver today. Investors who lost money with Adobe Inc. NASDAQ: ADBE shares should contact the Shareholders Foundation in connection with Lawsuit

About Adobe

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company's core offerings are organized around digital media and digital experience.

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